Philippines Market Insights 2017.12.1



News Highlights: San Miguel Corporation (SMC) will join the bid for 54% of Vietnam’s biggest brewery, Saigon Beer Alcohol Bev. Corp. (Sabeco), maker of Bia Saigon & 333 beers. Metro Pacific Investments (MPI)’s MPCALA Holdings aims to sign the P7.2bn contract for the Cavite segment of Cavite‐Laguna Expressway (CALAx) early 2018. Meanwhile, S&P upgraded its GDP outlook for the Phils. to 6.6% from 6.4%.





Mart down, PSEi @8,254.03:  The benchmark index closed lower by 37.85 points, with weakness coming from uncertainties regarding the tax reform program and geopolitical jitters from North Korea’s missile test which is claimed to be capable of reaching the US mainland. Industrial (-­0.97%) and Property (-­0.95%) sectors took the brunt. Among actively traded shares were: MER (+P2.00 at P315.00), JFC (­‐P8.40 at P243.60), ALI (­‐P1.20 at P42.80), BDO (+P1.10 at P146.00), and SMPH (unch. at P36.30), on 18.72bn turnover. Losers edged out gainers, 85-­‐104, with net foreign inflows at P1.22bn.

Might teeter sideways: Mart might start the month on a good note following optimism from Wall Street and upbeat expectations before year-‐end, though some investors might continue to hold on or cash-­‐in  on gains made since the beginning of the year where the benchmark was doing below 7,000 points. Immediate support 8,170, resistance 8,350.


Tech  shares  tumbled  down:   Most Asian markets closed lower on Thursday as oil prices firmed after falling in the last session. Tech stocks in the region declined after US shares in the sector sold off on Wednesday. Investors in the region also digested  the official manufacturing PMI data out of China.

Shares  lower  on  No.Kor  jitters: Asian bourses closed broadly lower on Wednesday after North Korea launched another test missile near Japan’s waters, claiming it could reach the US mainland.


Dow  closes  at  record-‐high:  US  equities  crossed  above  24,000  for  the  first  time  on  strong indications the tax cut plan will get enough support for passage.

Tech  stocks  sold  off  as  financials  rose: The Dow Jones industrial average closed at a record high as investors focused on momentum in the U.S. economy. The second estimate for third-­‐quarter GDP was revised to 3.3% from 3%. It was also above the 3.2% expected by markets.


Oil prices rebounded: Crude oil prices climbed anew after OPEC and Russia said they are ready to extend production cuts. West Texas Intermediate (WTI) inched up $0.10 to $57.40/barrel.

Prices  lower  on  uncertainty:  Markets  expect  an  agreement  between  oil  producers  to  be extended, but some are concerned about Russia's commitment to extend those cuts. West Texas Intermediate (WTI) shed $0.40 to $57.30/barrel.  


SMC bids for Vietnam’s biggest brewery:

San Miguel Corporation (SMC) will join the bid for 54% of Vietnam’s biggest brewery, Saigon Beer Alcohol Bev. Corp. (Sabeco), maker of Bia Saigon & 333 beers. Minimum bid for Sabeco was placed at 320k dong (or $14.11/share)

EMP to issue shares  to Singapore  firm:

Emperador  Inc. (EMP)  will issue 122.4mn new common shares to Singapore-­‐based Arran for P832.3mn (or P6.80/share)  under its Equity Linked Securities  (ELS) accord.   The amount will cover accrued interest under the ELS.

FPH’s  PECO  under  discussion  for   gov’t  take over:

Consumer  groups  in Iloilo  protested  to  end  Panay  Elec.  Co.’s  (PECO)  franchise  due  to  poor servicing  & high  tariffs.  Councillor  Gerochi  has  asked  gov’t.  to take  over PECO until a qualified distributor comes in.   PECO argued it has already addressed complaints.   PECO is 30%-owned  by First Philippine Holdings (FPH)

MPI's MPCALA to sign P7.2bn contract:

Metro Pacific Investments (MPI)’s MPCALA Holdings  aims to sign the P7.2bn contract for the Cavite segment of  Cavite-­‐Laguna  Expressway   (CALAx)  early  2018.    This  will  start  from Cavitex & end at SLEx-­‐Mamplasan.  Completion is slated 2020.

SMPH’s GFA increased to 8mn sqm:

SM Prime Holdings, Inc. (SMPH)’s mall GFA will rise to 8mn sqm., with the opening of its SM Centre Pullman, Bulacan mall on 01 Dec. (+27k sqm.).

GLO signed P7bn loan:

Globe Telecom Inc. (GLO) signed a 7-­‐year,  P7bn loan with Landbank to finance its $850mn capex.

MG to raise its authorized capital to P10bn:

Millenium Global Holdings, Inc.  (MG)    will  have  shareholders   approve  on  19  Dec.  the  purchase  of 365.8mn shares by its president,  Michael Yang, at P0.20, as the firm raises its authorized capital up to P10bn.

UDEVCO   awarded   P62bn  reclamation   proposal:

Dennis   Uy’s  Udenna Dev’t. Corp. (UDEVCO), Ulticon Builders & China Harbour Engineering was awarded by the Pasay City gov’t. for its P62bn reclamation proposal. Project will cover 265ha. of foreshore & offshore areas of Manila Bay in the Western part of Pasay City.

PNX  soft  opening  for Singapore  office:

Phoenix  Petroleum  Corporation (PNX) made a soft opening  for its Singapore  office for a full trading outfit. This will handle direct dealings  with refineries  & cut out middlemen.   PNX aims to install 30­‐50 new retail stations in 2018 from its present 500.


PH gets upgraded GDP forecast from S&P:

S&P upgraded  its GDP outlook for the Phils. to 6.6% from 6.4%.

3  foreign  firms  submit  proposal  on  $2bn  LNG  terminal:

Philippine National Oil Co. (PNOC), the corporate arm of the Department of Energy, has received three proposals from foreign firms to put up a $2bn liquefied natural gas (LNG) terminal — Korea Electric Power Corp. (KEPCO), Lloyds Energy Group and China National Offshore Oil Co. (CNOOC).

DOTr seeks Japanese aid in MRT 3 rehab:

Before the year ends, the Department   of  Transportation  (DOTr)   intends   to  bring  back  Japanese groups  Sumitomo  Corp. and its technical  partner,  Mitsubishi  Heavy Industries, who used to be involved in the Metro Rail Transit Line 3 (MRT3) construction and design 18 years ago in a bid to resolve breakdowns that disrupt the journey of thousands  of commuters on a near-­‐daily basis.

PH outstanding  debt reaches  P6.5tn in 10 months:

 Latest  data from the Bureau of Treasury showed the gov’ts outstanding  debt reached a record­‐ high of P6.501tn ending the first 10 months, driven by weaker peso.

DTI raises manufacturing growth forecast:

the Department of Trade and Industry (DTI) is raising its target for the growth of the manufacturing sector starting next year to 10% in 2017 and 11% after, from earlier forecast of 8-­‐10%

Metal  production  grows  6% in 9 months:  

Metal  production  rose  6%  to P81bn in the first nine months  of the year primarily  due to the increased metal demand of China, as per the Mines and Geosciences  Bureau (MGB).

House may expand probe on SSS stock trading scandal:

House panel eyes expanding its investigation after lawmakers discover the lack of strict measures on the personal investments  of officers.









Philippines Market Insights 2017.11.29


Philippines Market Insights 2017.12.4